Detroit School Bail-Out

Michigan taxpayers may end up paying for the ailing Detroit school district.

The Michigan House is set to vote Thursday on a $617 million state bailout and restructuring of Detroit's ailing school district under a proposed compromise agreement that was being presented to majority Republicans for review.

According to the Associated Press, the bills, which were still being drafted, would retire the state-managed Detroit Public Schools' enormous $467 million operating debt over time and provide $150 million to transition to a new district in July.

Meanwhile, six Detroit principals admitted to cheating by accepting money and gift cards for kickbacks from vendors who wanted favors.